Guide to Short-Term Rental Laws in Hawaii

Navigating Hawaii's regulatory landscape presents unique challenges that require careful attention to island-specific rules and ongoing regulatory changes. Unlike states with uniform statewide regulations, Hawaii operates under a county-based system where each island's government establishes its own distinct rules for short-term rentals. 

This decentralized approach—coupled with growing concerns about housing affordability and tourism impacts—has created one of the nation's most complex and restrictive regulatory environments for vacation rental operators.

This comprehensive guide breaks down everything you need to know about short-term rental laws in Hawaii, from state-level tax requirements to specific county regulations across the major islands.

Understanding Short-Term Rental Laws in Hawaii

Hawaii's approach to short-term rental regulation reflects the state's unique geography and the varying priorities of its island communities. Unlike mainland states where a central authority might establish uniform rules, Hawaii's regulatory system is primarily county-driven, with each island maintaining significant autonomy in how it governs vacation rentals.

At the state level, Hawaii officially refers to short-term rentals as "transient accommodations," defined as properties rented for fewer than 180 consecutive days. This broad definition establishes the framework for state taxation but leaves most operational regulations to the county governments of Honolulu (Oahu), Hawaii (Big Island), Maui, and Kauai.

The variation between counties isn't merely administrative—it fundamentally determines whether and how a property can legally operate as a short-term rental. Some areas welcome vacation rentals with relatively straightforward permitting processes, while others have effectively banned them outside of designated resort zones. These differences reflect each island's unique relationship with tourism, housing availability, and community character.

The regulatory landscape has also become increasingly restrictive in recent years. Many counties have strengthened their oversight of short-term rentals in response to concerns about housing affordability and neighborhood impacts. Regulations that existed when you purchased a property may change, potentially affecting your operational model and investment returns.

For property owners and investors, this complex and evolving landscape makes thorough research and ongoing monitoring of local regulations absolutely essential. Understanding the specific rules that apply to your property's island and district is the foundation of legal compliance and successful operation in Hawaii's challenging but potentially rewarding vacation rental market.

Definition of a Short-Term Rental in Hawaii

Hawaii's definition of what constitutes a short-term rental is distinctive compared to most mainland states and serves as the foundation for how these properties are regulated and taxed across the islands.

At the state level, Hawaii defines "transient accommodations" as properties rented for fewer than 180 consecutive days. This 180-day threshold represents a significant departure from the 30-day standard commonly used in many other states and has important implications for both operators and guests.

While this state-level definition creates a broad framework, county-level ordinances sometimes establish more specific classifications:

• Honolulu County (Oahu) defines short-term rentals as lodgings provided for fewer than 30 consecutive days, creating a narrower definition than the state standard
• Maui County follows the state definition, classifying Transient Vacation Rentals (TVRs) as any rental less than 180 days
• Hawaii County (Big Island) generally adheres to the state's 180-day definition
• Kauai County similarly follows the 180-day state definition but applies different permitting standards

These definitions typically encompass a wide range of property types, including:

• Single-family homes
• Condominiums and apartments
• Individual rooms within a dwelling
• Duplexes and multi-family units
• Cottages and accessory dwelling units

It's worth noting that traditional hotels, motels, and timeshares fall under separate regulatory frameworks and are not typically classified as short-term rentals or transient accommodations for permitting purposes (though tax obligations may still apply).

The distinction between hosted and unhosted rentals is also important in many Hawaiian counties:

• Hosted rentals (often called "bed and breakfasts" or B&Bs) are those where the owner lives on-site and rents out individual rooms or portions of the property
• Unhosted rentals (often called "transient vacation units" or TVUs) are entire homes rented without the owner present

This distinction can significantly impact permitting eligibility, as some counties offer different pathways for these rental types, with hosted accommodations sometimes facing fewer restrictions.

Starting a Short-Term Rental Business in Hawaii

Launching a short-term rental business in Hawaii involves navigating multiple layers of regulation at both the state and county levels. Success requires thorough research, careful planning, and ongoing compliance with evolving requirements specific to your property's location.

1. Research Local Zoning Regulations

Before purchasing a property or converting an existing one to a short-term rental, thoroughly investigate the specific zoning regulations in your county. Hawaii's county-based approach means that permitting eligibility varies dramatically based on location—even properties within the same island may face entirely different rules.

This preliminary research is particularly crucial in Hawaii, where many counties severely restrict short-term rentals outside of designated resort zones:

• Honolulu County (Oahu) primarily restricts short-term rentals to resort-zoned areas and a limited number of apartment-zoned areas
• Maui County is actively phasing out short-term rentals outside hotel districts
• Hawaii County (Big Island) permits short-term rentals in specific zoning districts, including resort areas and certain commercial zones
• Kauai County restricts short-term rentals to Visitor Destination Areas and approved zones

Purchasing a property without understanding these zoning limitations could result in an investment that cannot legally be used as intended. Most counties provide zoning maps or lookup tools on their planning department websites to help determine if a property is eligible for short-term rental operation.

2. Obtain State Tax Licenses

All short-term rental operators in Hawaii must register with the state Department of Taxation to obtain:

• Transient Accommodations Tax (TAT) License: Required for collecting and remitting the 10.25% state tax on rental income
• General Excise Tax (GET) License: Required for collecting and remitting the state's 4% general excise tax (with county surcharges varying by island)

These tax registrations are mandatory regardless of which island your property is on and must be obtained before beginning operations. The application process can be completed online through the Hawaii Tax Online portal, requiring basic business and property information.

Once obtained, these tax license numbers must be displayed on all advertisements and listings for your property, a requirement that is actively enforced through monitoring of online platforms.

3. Apply for County Permits and Licenses

Beyond state tax registrations, most Hawaii counties require specific permits or licenses for short-term rental operations. These local authorizations form the cornerstone of legal compliance and typically involve:

• Honolulu County: Short-Term Rental Registration or Non-Conforming Use Certificate (NUC) for grandfathered properties
• Hawaii County: Short-Term Vacation Rental (STVR) permit or Non-Conforming Use Certificate
• Maui County: Short-Term Rental Home (STRH) permit or other specialized permits
• Kauai County: Transient Vacation Rental (TVR) Certificate or Non-Conforming Use Certificate

The application processes vary by county but generally involve:

• Detailed application forms
• Property ownership documentation
• Site plans and floor plans
• Parking information
• Insurance verification
• Neighbor notification (in some counties)
• Compliance with building, fire, and safety codes
• Substantial application fees (often $1,000 or more)

Processing times can range from several weeks to many months, with some counties having waitlists or caps on the number of permits issued. Starting this process well in advance of your intended operation date is essential.

4. Comply with Safety Standards

Safety requirements for Hawaii short-term rentals typically include:

• Working smoke detectors and carbon monoxide alarms
• Fire extinguishers
• Emergency evacuation maps and exit plans
• Compliance with building codes
• Maximum occupancy limitations based on square footage and bedroom count
• Clear posting of house rules and emergency contact information

Many counties require initial safety inspections as part of the permit application process, and some mandate periodic re-inspections to ensure continued compliance. These safety standards not only satisfy regulatory requirements but also help protect guests in Hawaii's unique environment, where natural disasters like tsunamis and volcanic activity can pose risks.

5. Establish Local Management

All Hawaii counties require short-term rental operators to designate a local contact person who can respond to issues promptly. This requirement is particularly important for off-island owners who cannot personally address emergencies or complaints.

The local contact must typically:

• Be based on the same island as the rental property
• Be available 24/7 by phone
• Respond to issues within a specified timeframe (often 1-2 hours)
• Have access to the property
• Be authorized to address problems that arise

For non-local owners, this requirement necessitates hiring a professional property manager or establishing a relationship with a reliable local contact. The contact information must be provided to the permitting authority and, in most counties, displayed prominently within the rental property.

6. Secure Proper Insurance

Standard homeowners insurance typically doesn't cover commercial short-term rental activities, creating a potential coverage gap for unprepared operators. Adequate insurance for Hawaii short-term rentals usually includes:

• Property coverage for the dwelling and contents
• Liability protection for guest injuries (many counties require at least $1 million in coverage)
• Protection against natural disasters common in Hawaii (flooding, hurricanes, volcanic activity)
• Loss of rental income coverage

Most Hawaii counties explicitly require proof of liability insurance as part of the permit application process, typically with minimum coverage of $1 million. This requirement reflects the heightened liability concerns associated with vacation properties in an environment with unique natural hazards and recreational activities.

7. Understand and Fulfill Tax Obligations

Short-term rental operators in Hawaii have significant tax responsibilities at both the state and county levels:

• State Transient Accommodations Tax (TAT): Currently 10.25% of gross rental income
• County Transient Accommodations Tax: An additional 3% in most counties
• State General Excise Tax (GET): 4% of gross rental income
• County GET Surcharges: Additional percentage varying by county (e.g., 0.5% in Honolulu)

While platforms like Airbnb and Vrbo collect and remit some taxes in Hawaii, operators remain ultimately responsible for ensuring all tax obligations are fulfilled. Clear record-keeping is essential, as Hawaii has some of the nation's most aggressive enforcement of vacation rental tax compliance.

Licensing Requirements for Hawaii Short-term Rentals

Hawaii's approach to short-term rental licensing operates primarily at the county level, with each island maintaining its own distinct permitting system. While the state doesn't issue a specific short-term rental license, it does require tax registrations that serve as prerequisites for county permits.

At the state level, all short-term rental operators must obtain:

• Transient Accommodations Tax (TAT) License: For collecting and remitting the 10.25% state tax on rental income
• General Excise Tax (GET) License: For collecting and remitting the state's 4% general excise tax

These state tax registrations are processed through the Hawaii Department of Taxation and require a one-time registration fee of $20. Once issued, these licenses remain valid as long as the business operates and files returns, though they may be revoked for non-compliance with tax requirements.

At the county level, licensing and permitting systems vary significantly:

Honolulu County (Oahu)

Honolulu requires a Short-Term Rental Registration for all vacation rentals operating within eligible zones. Key features of this system include:

• $1,000 initial registration fee
• Online application process
• Eligibility primarily limited to resort-zoned areas and specific apartment zones
• Non-transferable registration that expires annually
• Required display of registration number in all advertisements

Properties that have operated continuously as short-term rentals since before October 22, 1986, may qualify for a Non-Conforming Use Certificate (NUC), which allows operation in otherwise ineligible zones. However, new NUCs are not being issued, and existing ones must be renewed annually.

Hawaii County (Big Island)

Hawaii County requires a Short-Term Vacation Rental (STVR) Permit for most vacation rentals. The system includes:

• Application involving forms, site plans, floor plans, and compliance documents
• Permitted operation in specific zoning districts (V, CG, CV, and designated resort areas)
• Adherence to a "Good Neighbor Policy" regulating noise, parking, and property use
• Annual renewal requirement

Properties operating as short-term rentals before the county's ordinance took effect may be eligible for a Non-Conforming Use Certificate (NUC), similar to Oahu's system.

Maui County

Maui County has implemented a Short-Term Rental Home (STRH) Permit system with stringent requirements:

• Limited number of permits available, with caps by district
• Five-year ownership requirement before applying (with some exceptions)
• Notification of neighbors within 500 feet of the property
• Requirement that the property be the owner's primary residence in many cases
• Phasing out of transient vacation rentals outside hotel districts

Maui's system is among the most restrictive in the state, reflecting the county's concerns about housing availability and community impacts.

Kauai County

Kauai County's Transient Vacation Rental (TVR) Certificate system features:

• Restriction of new permits to Visitor Destination Areas
• Grandfathering of properties operating before restrictive ordinances through Non-Conforming Use Certificates
• Annual renewal requirements
• Specific operational standards including 24/7 contact availability

Across all counties, these permits and licenses generally have defined validity periods—most commonly one year—after which renewal is required. The renewal process typically involves confirming continued compliance with regulations, updating property information if needed, and paying renewal fees.

It's worth noting that Hawaii's permitting systems are not merely administrative formalities—they represent substantive regulatory frameworks with active enforcement. Operating without proper permits can result in substantial daily fines (often $1,000 or more per day), forced closure, and potential legal action.

License Renewals

Maintaining valid permits and licenses for Hawaii short-term rentals requires careful attention to renewal processes and deadlines. Both state tax licenses and county permits have specific renewal requirements that must be met to continue legal operation.

State License Renewals

Hawaii's TAT and GET licenses don't require annual renewal in the traditional sense, but operators must:

• File tax returns on schedule (monthly, quarterly, or semiannually depending on revenue volume)
• Pay all taxes due on time
• Update the Department of Taxation regarding any changes to business information

Failure to file returns or pay taxes can result in license revocation, requiring a new application and potentially creating a gap in legal operation.

County Permit Renewals

County short-term rental permits typically require formal renewal on an annual basis, though the specific timing and procedures vary by island:

Honolulu County (Oahu):

• Short-Term Rental Registrations must be renewed annually
• Renewal applications must be submitted 1-3 months before expiration
• The process involves confirming continued compliance with all requirements
• Renewal fees are typically comparable to initial registration fees

Hawaii County (Big Island):

• STVR permits and Non-Conforming Use Certificates require annual renewal
• Renewal involves verification of continued compliance with county regulations
• Operators must certify ongoing adherence to the "Good Neighbor Policy"
• Updated contact information and proof of insurance must be provided

Maui County:

• STRH permits typically require renewal every 1-5 years, depending on the specific permit type
• The renewal process includes confirming continued primary residence status where applicable
• Verification that the property remains in compliance with all permit conditions
• Updated insurance documentation and local contact information

Kauai County:

• TVR Certificates and Non-Conforming Use Certificates require annual renewal
• Renewal applications must confirm no material changes to the property or operation
• Continued compliance with all operational standards must be certified
• Updated insurance and contact information is required

Across all counties, operating with an expired permit can result in significant penalties, including daily fines often exceeding $1,000 per day. Many jurisdictions also specify that permits expired for more than a certain period (often 30-60 days) are deemed permanently invalid, requiring a completely new application rather than a simple renewal.

The renewal process provides counties with an opportunity to verify ongoing compliance and, in some cases, to implement new requirements that have been adopted since the initial permit was issued. This makes it essential for operators to stay informed about regulatory changes that might affect their renewal eligibility or impose new operational requirements.

Most county planning departments send renewal notices as a courtesy, but the ultimate responsibility for timely renewal rests with the property owner. Changes in contact information or issues with mail delivery could result in missed notifications, making proactive tracking of renewal deadlines essential.

Required Documents for Hawaii Airbnb Hosts

Operating a short-term rental in Hawaii requires maintaining various documents to demonstrate compliance with state and county regulations. These materials support the initial permit application, facilitate ongoing operations, and may be requested during inspections or in response to complaints.

Essential documentation typically includes:

• Proof of property ownership such as a title report or deed. Hawaii counties often require a certified copy from the Bureau of Conveyances or a recent title report from a licensed company.
• Property information including the address, Tax Map Key (TMK) number, and detailed floor plans and site plans. Many counties require these plans to be drawn to scale and to show features like parking spaces, entrances, and emergency exits.
• Owner and operator identification including government-issued ID and reliable contact methods. Non-resident owners typically must provide additional documentation regarding their ownership structure and local property management arrangements.
• Local contact information for the person responsible for property management. This individual must be based on the same island as the rental property and available 24/7 to address issues. Documentation typically includes their full contact details and verification of their authority to act on the owner's behalf.
• Proof of insurance coverage demonstrating appropriate protection for short-term rental activities. Most Hawaii counties require commercial general liability insurance with minimum coverage of $1 million, with the policy explicitly covering short-term rental use.
• Tax identification documents including State of Hawaii GET and TAT license numbers, which must be prominently displayed in all advertisements and often within the property itself.

Compliance certifications which include:

• Zoning confirmation from the county planning department
• Flood zone verification
• Fire safety plan and inspection certification
• Noise mitigation plan
• Parking plan
• Statement of compliance with county-specific rules

Beyond these regulatory documents, responsible operators maintain additional records to support their business operations, including:

• Guest reservation and contact information
• Guest agreements and house rules acknowledgments
• Cleaning and maintenance logs
• Neighbor notification confirmations (where required)
• Tax payment records and receipts
• Communications with county authorities

In some counties, particularly Honolulu and Maui, operators must also maintain a "property binder" or information packet within the rental that contains essential information for guests, including:

• House rules and quiet hours
• Parking instructions
• Emergency procedures and evacuation routes
• Local contact information
• County regulations applicable to vacation rentals
• Cultural information about respecting Hawaiian communities and environments

Organizing these materials in both physical and digital formats ensures you can quickly access them when needed. Many professional hosts create comprehensive digital filing systems with backup copies of all critical documents, protecting against loss and enabling remote access when questions arise.

Taxes for Hawaii Short-Term Rentals

Hawaii imposes one of the nation's most comprehensive tax structures on short-term rental operations, with obligations at both the state and county levels. Understanding and fulfilling these tax responsibilities is an essential component of legal operation and financial management for vacation rental properties.

The tax framework for Hawaii short-term rentals includes:

State Transient Accommodations Tax (TAT)

The State TAT is currently set at 10.25% of gross rental income for transient accommodations. This tax applies to the entire amount paid by guests, including cleaning fees, service charges, and other non-optional fees associated with the stay.

All short-term rental operators must register for a TAT license with the Hawaii Department of Taxation before beginning operations. This license number must be displayed on all advertisements and listings, a requirement that state authorities actively enforce through monitoring of rental platforms.

County Transient Accommodations Tax

In addition to the state TAT, most Hawaii counties now impose their own transient accommodations tax, typically set at 3%. This county-level tax was authorized by state legislation in 2021 and represents a relatively new component of Hawaii's tax structure for vacation rentals.

The county TAT is separate from the state TAT and may have different filing requirements, though many counties have aligned their systems with the state for efficiency.

State General Excise Tax (GET)

Hawaii's GET is a business tax assessed at 4% on most goods and services, including short-term rentals. Unlike a conventional sales tax, GET is technically imposed on the business rather than the consumer, though businesses are permitted to pass this cost on to customers.

All short-term rental operators must obtain a GET license from the state Department of Taxation and file returns regularly. The GET applies to the entire amount collected from guests, including the TAT itself—creating a tax-on-tax situation that effectively increases the total tax burden.

County GET Surcharges

Some counties impose additional GET surcharges on top of the state's 4% rate. For example, Honolulu County (Oahu) adds a 0.5% surcharge to the state GET, bringing the total to 4.5% for properties on that island.

These surcharges are collected along with the state GET but are distributed to the counties for local use, often supporting transportation and infrastructure projects.

Property Taxes

Property tax treatment of short-term rentals varies by county, but generally, properties used as vacation rentals are taxed at higher rates than owner-occupied or long-term rental properties. For example:

• Honolulu County places short-term rentals in the "Hotel and Resort" property tax classification, with rates several times higher than residential rates
• Maui County similarly taxes short-term rental properties at higher "Commercial" or "Hotel and Resort" rates
• Hawaii and Kauai counties also apply premium rates to properties used for transient accommodations

This differential property tax treatment can significantly impact the overall economics of a short-term rental operation and should be carefully considered in financial planning.

Tax Filing and Remittance

Tax returns for the state TAT and GET are typically filed monthly, quarterly, or semiannually, depending on tax liability volume. Most operators can file and pay online through the Hawaii Tax Online portal.

While major booking platforms like Airbnb and Vrbo collect and remit some taxes on behalf of hosts in Hawaii, these arrangements don't necessarily cover all applicable taxes or may apply only to bookings made directly through those platforms. Operators remain ultimately responsible for ensuring all tax obligations are fulfilled correctly and on time.

Hawaii has implemented aggressive enforcement of tax compliance for vacation rentals, including data-sharing agreements with platforms and dedicated enforcement staff. Penalties for non-compliance can be severe, including back taxes, interest, penalties, and potential criminal charges for intentional evasion.

Statewide Hawaii Short-term Rental Rules

Unlike some states with comprehensive vacation rental legislation, Hawaii's state-level approach focuses primarily on taxation and establishing a broad framework that empowers counties to create their own detailed regulatory systems. This creates a two-tiered regulatory structure where the state establishes certain baseline requirements while counties implement the detailed operational rules.

Key aspects of Hawaii's state-level approach include:

Definitional Framework

State law defines "transient accommodations" as properties rented for fewer than 180 consecutive days, establishing the foundational classification used for taxation and county-level regulation. This definition applies consistently across all islands, creating at least one element of uniformity in an otherwise varied regulatory landscape.

Tax Structure

The state establishes and collects the 10.25% Transient Accommodations Tax (TAT) and 4% General Excise Tax (GET) that apply to all short-term rentals throughout Hawaii. These tax obligations exist regardless of county location or local permitting status, though operating without required county permits can trigger enhanced penalties for tax violations.

State law requires all transient accommodation operators to register for TAT and GET licenses and to display these license numbers in all advertisements and listings. This requirement is actively enforced and provides a mechanism for identifying unpermitted operations.

Advertising Requirements

Hawaii state law requires all advertisements for transient accommodations to display the property's TAT license number. This requirement applies to online listings, print advertisements, and any other promotional materials for the property.

Failure to include the TAT number in advertisements is itself a violation, separate from any underlying permitting issues, and can result in fines of $500 per day for first violations and $1,000 per day for subsequent violations.

County Authority Reinforcement

Recent state legislation has clarified and reinforced counties' authority to regulate short-term rentals through zoning and other mechanisms. For example, SB2919, enacted in recent sessions, explicitly supports counties' ability to phase out non-conforming short-term rentals and to establish their own regulatory frameworks.

The state has generally avoided preempting county regulations, instead opting to support local control over short-term rental operations. This approach allows each island to develop policies aligned with its specific community needs and tourism management goals.

Data Sharing and Enforcement

State law authorizes data sharing between the Department of Taxation, counties, and rental platforms to support enforcement efforts. These provisions enable coordinated approaches to identifying unpermitted operations and tax non-compliance.

The state has implemented some of the nation's most aggressive enforcement mechanisms for vacation rental taxation, including dedicated investigation units and substantial penalties for non-compliance.

General Safety Standards

While not specific to vacation rentals, state-level building, health, and safety codes establish minimum standards that all accommodations must meet. These include requirements related to structural integrity, electrical systems, plumbing, fire safety, and sanitation.

Counties may impose additional safety requirements specific to vacation rentals, but these state-level standards create a baseline that applies throughout Hawaii.

This state-level framework, while less prescriptive than the detailed county ordinances, creates important parameters within which the county-level regulatory systems operate. Understanding both state and county requirements is essential for comprehensive compliance in Hawaii's complex short-term rental landscape.

Short-Term Rental Laws by County in Hawaii

Hawaii's four counties have each developed distinct regulatory approaches to short-term rentals, reflecting their unique tourism patterns, housing markets, and community priorities. Understanding these county-specific regulations is essential for successful operation in different markets across the state.

1. Honolulu County (Oahu)

Honolulu County defines short-term rentals as accommodations for periods less than 30 consecutive days, a more restrictive threshold than the state's 180-day definition. The county severely limits where new short-term rentals can operate, primarily restricting them to resort-zoned areas and a few specific apartment-zoned districts.

Key Regulations:

• Short-term rentals permitted only in designated resort zones and specific apartment-zoned areas
• Required Short-Term Rental Registration with $1,000 initial fee
• "Grandfathered" properties operating continuously since before October 22, 1986, may qualify for a Non-Conforming Use Certificate (NUC)
• Maximum occupancy limited to two adult transient occupants per bedroom
• Registration numbers must be displayed in all advertisements
• Registrations are non-transferable and valid for one year
• Property sales terminate existing registrations; new owners must apply independently

Honolulu County actively enforces these regulations through dedicated staff, online monitoring, and response to complaints. The county has demonstrated willingness to impose significant fines—potentially $1,000 to $10,000 per day—for unpermitted operations.

Tax Rates:

• 10.25% state Transient Accommodations Tax
• 3% county Transient Accommodations Tax
• 4% state General Excise Tax
• 0.5% county GET surcharge
• Higher property tax rates for properties used as short-term rentals

2. Hawaii County (Big Island)

Hawaii County follows the state's 180-day definition for transient accommodations and permits short-term vacation rentals in specific zoning districts, primarily in designated resort areas and certain commercial zones.

Key Regulations:

• Short-Term Vacation Rental (STVR) permit required
• Permitted in V, CG, and CV districts, as well as residential and commercial zoning districts within General Plan Resort and Resort Node areas
• "Good Neighbor Policy" mandating quiet hours (9:00 p.m. to 8:00 a.m.), parking regulations, and restrictions on commercial use
• Local contact person required to be available 24/7
• Properties operating before the county ordinance took effect may qualify for a Non-Conforming Use Certificate
• Annual permit renewal required

Hawaii County enforces these regulations through permit reviews, complaint response, and periodic monitoring. The county's approach balances tourism accommodation needs with residential quality of life through targeted zoning restrictions rather than the more comprehensive limitations seen in Honolulu or Maui.

Tax Rates:

• 10.25% state Transient Accommodations Tax
• 3% county Transient Accommodations Tax
• 4% state General Excise Tax
• County property tax rates for short-term rentals higher than residential rates

3. Maui County

Maui County defines short-term rentals as "transient vacation rentals" for periods less than 180 days, consistent with the state definition. The county has established a detailed regulatory framework with multiple permit types and significant restrictions on eligibility.

Key Regulations:

• Short-Term Rental Home (STRH) permits required, with strict caps by district
• Five-year ownership period generally required before applying for a permit
• Property typically must be the owner's primary residence
• Neighbor notification required for permit applications
• Local contact person available 24/7 mandatory
• Phasing out of transient vacation rentals outside hotel districts
• Advertisements must include the property's Tax Map Key number
• Safety inspections required for permit approval
• Different permit pathways for different property types and zones

Maui County actively enforces these regulations through dedicated staff, permit reviews, and response to community complaints. The county has demonstrated a commitment to gradually reducing the number of short-term rentals in residential areas, with a clear preference for concentrating visitor accommodations in designated hotel and resort districts.

Tax Rates:

• 10.25% state Transient Accommodations Tax
• 3% county Transient Accommodations Tax
• 4% state General Excise Tax
• Higher property tax rates for short-term rental properties

4. Kauai County

Kauai County follows the state definition of transient accommodations and has implemented a permit system that sharply limits where new short-term rentals can operate while providing pathways for existing operations to continue.

Key Regulations:

• Transient Vacation Rental (TVR) Certificate required
• New permits restricted to designated Visitor Destination Areas
• Properties operating as short-term rentals before the county ordinance may qualify for Non-Conforming Use Certificates
• Local contact person required to be available 24/7
• Safety standards including emergency protocols specific to Kauai's unique natural hazards
• Annual renewal requirements
• Permits are typically non-transferable

Kauai County enforces these regulations through permit reviews, complaint response, and periodic monitoring. The county's approach reflects its commitment to preserving residential neighborhoods while accommodating tourism in appropriate designated areas.

Tax Rates:

• 10.25% state Transient Accommodations Tax
• 3% county Transient Accommodations Tax
• 4% state General Excise Tax
• Higher property tax rates for vacation rental properties

Bottom Line

Successfully operating a short-term rental in Hawaii requires careful navigation of one of the nation's most complex and restrictive regulatory landscapes. With minimal state-level standardization and significant variation between counties, property owners must take a location-specific approach to compliance and operational planning.

Before investing in a short-term rental property in Hawaii:

1. Research thoroughly - Understand all applicable state and county regulations, with particular attention to zoning restrictions that may fundamentally determine whether your property can legally operate as a short-term rental. This research should be location-specific and include consultation with county planning departments and legal advisors familiar with the specific island.
2. Consider location carefully - The dramatic differences in county regulations make some areas significantly more favorable for short-term rental investments than others. Resort-zoned properties may command premium prices but offer the most straightforward path to legal operation with lower regulatory risk.
3. Budget for compliance costs - Factor in permit fees, tax obligations, potentially higher property tax rates, insurance requirements, and ongoing operational expenses related to regulatory compliance. These costs in Hawaii are among the highest in the nation and must be incorporated into your financial planning.
4. Implement professional management practices - Hawaii's unique environment creates special considerations for vacation rental management, from natural disaster preparedness to cultural sensitivity. Professional standards for guest screening, property maintenance, and neighbor relations help prevent problems and support sustainable operation.
5. Stay informed about regulatory changes - Hawaii's short-term rental regulations continue to evolve, with counties regularly modifying their approaches in response to housing concerns and community feedback. Monitoring county planning department communications and participating in local host associations can help you stay ahead of regulatory changes.
   
   

The short-term rental landscape in Hawaii presents both exceptional challenges and potential rewards. By understanding and adhering to the complex web of state and county regulations, operators can build successful businesses that contribute positively to Hawaii's tourism economy while respecting the unique needs and character of island communities. The effort invested in proper compliance not only avoids potential penalties but also supports the long-term viability of your vacation rental investment in Hawaii's distinctive hospitality market.